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MODULE 7 PACKET
AE 05: INTERNATIONAL BUSINESS AND TRADE

MODULE 7 OVERVIEW:

Welcome to Module 7 –GLOBAL MARKET PARTICIPATION!

In this module, we will discuss the reasons why firms go International/Global. You are going to
differentiate between born-global firms and other companies . At the end of this module, you are
going to explain the pros and cons of choosing markets on the basis of market similarities. You
are now going to identify country in which your locally produced product will be sold.

You are set for an incredible journey! Have fun in the world of marketing!

CONSULTATION HOURS:
Phone or Messenger: 9 - 10 AM Mondays | 9-10 AM Thursdays
Virtual time: 4 - 5 PM Thursdays

MODULE 7 LEARNING OBJECTIVES:

By the end of this module, the students will be able to:
1. List and describe the five reasons why firms internationalize.
2. Differentiate between born-global firms and other companies.
3. Explain the difference between a standalone attractive market and a globally strategic one.
4. Cite the advantages and disadvantages of targeting developed countries, developing
countries, or transitional economies.
5. List and describe the filters used for screening national markets.
6. Explain the pros and cons of choosing markets on the basis of market similarity.

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COURSE CONTENT FOR MODULE 7:
INTRODUCTION TO MARKETING FOR HOSPITALITY AND TOURISM
ACTIVITY DESCRIPTION TIME TO
COMPLETE

Lecture discussion Types of Internationalization 30 minutes

Lecture discussion Evaluating National Market 15 minutes

Video Presentation Quick review 15 minutes

Lecture discussion Geographic Market Choices 30 minutes

Lecture discussion Country Selection 30 minutes

Giving instructions for the activity: For Final

Activity 30 minutes
Output

Quiz Summative quiz for module 7 30 minutes

LECTURE DISCUSSIONS

7.1 Internationalization – The term use for a firm’s expansion from its domestic market into
foreign markets. Whether to internationalize is a strategic decision that will fundamentally
affect any firm, including its operation and management.

Types of Internationalization
1. Opportunistic expansion- is an internationalization strategy that is adopted in
response to unsolicited orders from overseas customers.
2. Pursuing Potential Abroad and Diversifying risk – Perhaps is the most common
reason for a company to expand internationally is the lure of increasing sales and profit
from entering new market or maybe avoiding risk inherent to operating in only one
country.
3. Exploiting Different Market Growth Rate – Companies seeking growth abroad often
pay particular attention to market growth rate, which are subject to wide variations

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among countries. A company based in low-growth country may wish to expand into
faster-growing countries to take advantage of growth opportunities.
4. Following Customers Abroad – For companies, the decision to internationalize may
occur when one of its key customers moves abroad to pursue international
opportunities.
5. Born Global – it refers to firms that establishes marketing and other business
operations abroad upon formation of firms or immediately thereafter. These companies
develop their domestic markets and then tentatively enter international markets, usually
by exporting.
6. First-mover Advantage–A market advantage relating to brand awareness, sales and
profit that accrues to the first significant competitor to enter a new market.

7.2 Evaluating National Market

1. Standalone Attractive Market – A national market can appear attractive in a number of
ways. First, the potential primary market needs to be assessed. Two key
considerations are the size of market and its growth rate. Then the firm must consider
its possible competitive position.
2. Globally Strategic Market – Are the current and the future battlegrounds where global
competitors engage one another.
3. Lead market Countries – those that possess major research and development sites for
an industry or recognized for being trend setter. Ex. (What becomes “cool” in Japan
often spread to Korea, China and other Asian Countries. (Italy is recognized lead
market for high-end textiles and clothing.

7:3 Geographic Market Choices

1. Targeting Develop Economies – A developed country is defined as a sovereign state
that has a developed economy and technologically advanced infrastructure when
compared to other nations. Several factors that determine whether or not a country is
developed, such as the Human Development Index, political stability, gross domestic
product (GDP), industrialization and freedom.

The Human Development Index was developed by the United Nations to measure human
development in a country. HDI is quantified by looking at a country’s human development
such as education, health and life expectancy. HDI is set on a scale from 0 to 1 and most
developed countries have a score above .80.

Developed countries have post-industrial economies with service sectors contributing more
to the nation than the industrial sector. Because there are so many factors to consider,
actually defining what countries are developed can be a challenge.

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The United Nations Development Report 2019 Statistical Update ranks each country in the
world based on its HDI ranking. The following list is the top 10 countries on that list:
1. Norway
2. Switzerland
3. Ireland
4. Germany
5. Hong Kong, China
6. Australia
7. Iceland
8. Sweden
9. Singapore
10. The Netherlands
https://www.investopedia.com/updates/top-developing-countries/

2. Targeting Developing Countries - developing country, also called a less developed country
or underdeveloped country, is a nation with an underdeveloped industrial base, and a low
Human Development Index (HDI) relative to other countries. On the other hand, since the
late 1990s developing countries tended to demonstrate higher growth rates than the
developed ones. There is no universal, agreed-upon criterion for what makes a country
developing versus developed and which countries fit these two categories, although there
are general reference points such as a nation's GDP per capita compared to other nations.
Also, the general term less-developed country should not be confused with the specific
least developed country.

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 Afghanistan
 Albania
 Algeria
 Angola
 Antigua and Barbuda
 Argentina
 Armenia
 Azerbaijan
 Bahamas
 Bahrain
 Bangladesh
 Barbados
 Belarus
 Belize
 Benin
 Bhutan
 Bolivia
 Bosnia and Herzegovina
 Brazil
 Brunei
 Bulgaria
 Burkina Faso
 Burma
 Burundi
 Cambodia
 Cameroon
 Cape Verde
 Central African Republic
 Chad
 Chile
 China
 Colombia
 Comoros
 Democratic Republic of the Congo
 Costa Rica
 Côte d'Ivoire
 Croatia
 Djibouti

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 Dominica
 Dominican Republic
 Ecuador
 Egypt
 El Salvador
 Equatorial Guinea
 Eritrea
 Ethiopia
 Fiji
 Philippines
 Poland

3. Targeting Transnational Economy- While most of the top emerging markets are
tradition developing countries, Russia and Poland are intermediate economies from
the former Soviet Bloc.

4. Targeting BRIC – (Brazil, Russian, India and China), These four countries represent
very large emerging market. The growth rate of their economies increase by 3% in
early 1990’s and 7% in 2009. These are countries believed to be the future dominant
suppliers of manufactured goods, services, and raw materials by 2050. China and India will
become the world's dominant suppliers of manufactured goods and services, respectively,
while Brazil and Russia will become similarly dominant as suppliers of raw materials. As of
2010, South Africa joined the group, which is now referred to as BRICS.

7.4 Country Selection

1. The screening Process
Macro indicators – a data is useful in estimating the total market size of a country or
region.
Criteria for Selecting Target Country
1. Market Size and Growth
2. Political Condition
3. Competition
4. Market Similarity (Psychic distance – the perceived degree of similarity
between countries.

2. Listing Selection – A good way to screen countries is to develop a set of criteria

that serve as minimum standard that a country must meet in order to order or
move through the screening processes.
3. Group international Market

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MODULE 7, ACTIVITY OUTPUT

Instructions:
1. The class will be divided into pairs
2. Based on the Individual Research in Module 6 every team must come up with ma
Marketing Plan of the local product to be able to participate in the international/global
market
3. Each team will follow the outline prepared before.
4. You will be given 2 weeks to accomplished the plan and present it thru a video
presentation as your requirement for the final examination
5. A soft copy of the document will also be submitted.
a. A 4 sheet format with 1 inch margin in all sides
b. Font sized 12 in Times new romans or courier format
Marketing Plan Outline
For your Philippine Origin Product to International Market

Executive Summary
The executive summary is a small, summarized version of your marketing plan. The
main objective is it to briefly list and describe all relevant components. Keep in mind that
most executives who’ll read your marketing plan won’t have the time to read the full
document. Therefore, you need to make sure that they’re immediately getting the full
picture.

Mission Statement
Your mission statement should describe your marketing activities on a meta level.
Hence, you need to answer these basic business questions:
 What do you want to do?
 Why do you want to do it?
 Who do you do it for?
All of your business activities should be based on your mission statement. When you
start wondering if you’re still heading in the right direction, use this statement to double-
check your approach.

Situation Analysis

This analysis covers these elements:

 Product/Service: What are you selling?

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 Unique Selling Proposition: What is your unique selling proposition? And what
separates you from your competitors?
 Best Practices: What are best practices at your company? They could be well-
performing marketing channels, buyer personas with a large amount of purchase
intent, or campaigns that have generated a lot of leads.
 Challenges: What are the current challenges that your company (especially your
marketing team) is facing?
 Competitor Analysis: Who are your competitors? How are your competitors
performing?
 SWOT Analysis: What are the strengths, weaknesses, opportunities, and threats
that your company (especially your marketing team) is facing?

Target Market
What market is your product or service trying to target? Is it a B2B market or a
consumer market?
The target market includes the industries that you sell your product or service to. It
should be as detailed as possible, and it’s the foundation for any marketing activities.
Without properly targeting, you won’t be able to successfully run a marketing campaign.
So what do you need to know about your target market? Get started by answering these
questions:
 Which companies are in your target market?
 How can you reach them?
 Why would companies in these industries buy your product/service?
 Why would companies from these industries refuse to buy your product or
service
 What are these companies’ current needs?

Buyer Personas
You’ve defined your target market. That’s great, but now we need to dive deeper into
this market, to find out who will actually buy your product or service. So now is the time
to create your buyer personas. This process involves pinpointing which people work in
your target markets, and which ones represent segments of your customer base.
You’ll need to define these customer archetypes in a very detailed way. That way, you’ll
be able to make informed marketing decisions. But what attributes should you describe?
You can easily use our buyer persona template to pinpoint your first personas.
In general, a buyer persona should cover these points:
 The country of your choice
 Background Information: Define general information, such:

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Land Area: Population: Languages:
Life Expectancy: People: Religions: Currency: (Value convert to Philippine
Peso)
Government: Climate: Tourism: Transportation:
Head of State: Prime Minister: Minister of Foreign
Affairs:
Key export commodities: Vital Import Commodities: Trading
Partners (Export & Import)
 Statement: Create one quote that contains the values, objectives, and challenges
of your buyer persona.
 Goals: What does your buyer want to achieve?
 Challenges and Problems: List the most important challenges that your buyer
persona faces.
 Values: What are your buyer persona’s most relevant values and beliefs?
 Buying Decisions: Why and when does your buyer persona buy?
 Solution: How can your product or service help your buyer persona overcome his
or her challenges?

Marketing Objectives and Performance

This part of the marketing plan is about setting ambitious but achievable goals, and
defining how you’ll track your performance during the described period. You can use
our SMART goals template to make sure that you’re setting the right objectives.

Pricing Strategy
Set your prices, and align them with your marketing strategies. This strategy is key to
generating profits; it will decide the success or failure of your products or services.
 Penetrate It: If you want to enter a competitive market, use the penetration
strategy: Set a low price, in order to quickly gain a market share. Then after
you’ve established your company, raise your prices step-by-step.
 Bundle It: If you’re offering multiple products or services, you can consider this
option as well. It involves bundling different products or services to increase the
provided value while setting a higher price.

Distribution Plan
The distribution plan explains how you’ll deliver your product or service. If you’re
offering online software, your product could be distributed through your website. If
you’re running a local clothes shop, you distribute your products through your shop. So

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you see, the distribution channel needs to be aligned with your product. Hence, you
need to answer the following questions:
1. What is your preferred distribution channel?
2. Why are you choosing it over others?
3. What are the costs related to distributing your products or services?
4. What’s the impact of your distribution channel on your delivery times?

For example, our software Filestage can be only accessed through our website (e. g. by
starting a free trial). This is our only and most important distribution channel.

Promotional Plan
After defining your distribution channel(s), it’s time to make sure that you really need to
deliver your product or service. First of all, you need to define the message that should
be conveyed to your buyer personas. Afterwards, let’s look at suitable promotion
channels that can be used to acquire new customers. Obviously, they should be
channels you can find your buyer personas in. But the range of possibilities still seems
to be endless.

Conclusion

Marketing Plan Rubrics

Category 100% 90% 80% 70% 60%

Objectives Measurable Measurable Measurable Measurable Measurable

Achievable and Achievable and Achievable and
Profitable Profitable Profitable

Opportunities Growth and Strategic Growth Have seen Have seen Have seen
before before before

Target Market Well Segmented Well Segmented Simply Not Not

Segmented Segmented Segmented

Strategy Very New New Have seen Inconsistent Wrong

Before

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Product New Interesting Have seen Not thought Inconsistent
Before through

Place/ Objectives consistent Objectives consistent Objectives No No objectives

with strategy and with strategy and consistent with Objectives and poor
Distribution completely thought completely thought strategy strategy
through through

Promotion Objectives consistent Objectives consistent Objectives No No objectives

with strategy and with strategy and consistent with Objectives and poor
completely thought completely thought strategy strategy
through, including through,
ads from CAS

Price Objectives consistent Objectives consistent Objectives No No objectives

with strategy and with strategy and consistent with Objectives and poor
completely thought completely thought strategy strategy
through, based on through,
competition

References :
John D. Daniels, International Business, 16th Edition, Pearson, 2018
Cateora, Gilly, and Graham, International Marketing 16th edition, McGraw-Hill
Higher Education 2016.
Kate Gillespie, Global Marketing 4th edition, Routledge; (July 28, 2015)
Coughlan, Anne T., et al.(2006). A Comprehensive Study of Marketing Channels,
Pearson Education South Asia Pte Ltd.
Lascu, Dana (2013), International Marketing, Atomic Dog,2013
Vern Terpstra; James Foley; Ravi Sarathy, International Marketing, Naper
Publishing Group; 10th edition (2012)
Online Sources:

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 IMF -- International Monetary Fund Home Page
 https://www.imf.org/
 https://europa.eu/european-union/index_en
 Cooperation
 Association of Southeast Asian Nations
 World Trade Organization
 NATO
 United Nations
 European
 Free Trade
 Association
 European Union
 Asia-Pacific Economic Cooperation
 https://www.apec.org/
 https://www.enotesmba.com/2016/04/importance-of-international-marketing.html)
 https://vajiramias.com/current-affairs/corruption-perceptions-index-cpi-
2019/5e2a74d21d5def517fec7a83/
 (https://www.researchgate.net/figure/Cultural-value-orientations-and-examples-of-their-
specii-c-features_fig1_233337573)
 (https://www.investopedia.com/)

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